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Taxes when applied must treat everyone equally

2 March 2005

Taxes when applied must treat everyone equally

The Automobile Association is questioning why all vehicles and road users are not bearing equally the increased tax announced by the government. The 5 cents per litre (plus GST) increase is added to the excise on petrol, however the equivalent Road User Charges increase will only apply to light vehicles using diesel, and not to heavy vehicles.

Heavy vehicles use the roads equally with all other vehicles, and will also benefit significantly from greater roading investment. Therefore this increase must apply to all vehicles. They also have a far greater impact on the road surface than ordinary family cars.

Yet the Government’s proposed increase is directed primarily at motorists. Surely all road users should pay their equal share of this increase,” AA Public Affairs Director, George Fairbairn said.

Mr Fairbairn said that every sector of the economy will benefit from a safer and improved roading network – and that included business and industry.

“While it is inevitable that any increases faced by heavy vehicles will be passed on to their customers for many goods moved by truck, consumers have a choice as to whether or not to buy. Most consumers have little choice in whether to use their cars or not, and for the least affluent an unnecessary increase of 5 cents per litre is going to be painful” he said.

ENDS

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